2015 Pipeline Safety Operator Training ISN April 15, 2015
Agenda I. Contractor Management Trends II. ISN Process III. Operator Qualifications (OQ) in ISNetworld IV. Quick Facts V. ISN Events VI. Contact Information
Contractor Management Industry Trends
A Growing Industry Trend Global outsourcing of non-core business activities (1) • • 60% - 70% of total work hours completed by contractors • Contractors / subcontractors have higher incident rates (1) International Association of Oil and Gas Producers http://www.ogp.org.uk/pubs/2013s.pdf
Opportunity and Challenge • Increasing contractor management leads to positive trends for safety – Better specialization, skill and equipment – Enables safe and sustainable operations • Prime duty for safe operations and environmental stewardship lies with the owner organization – Robust strategy needed – Better risk mitigation
10 Strategic Elements 1. Establish a clear communication strategy 2. Designed to measure performance 3. Incorporate a risk-ranking process 4. Follow a three-step due-diligence process 5. Maintain a qualified contractor list 6. Establish consequences and an exit strategy 7. Address subcontractor management 8. Follow standardized and transparent guidelines 9. Are integrated with internal business processes 10. Leverage technology
1. Establish a Clear Communication Strategy • A well thought out plan for both internal and external communication – 99%: U.S. enterprises in the Construction Industry with fewer than 100 employees. US Census • Zero incidents goals What • Golden rules • Scorecard status • Performance and audit gaps • Timely and consistent How • Traceable and auditable • Mailings/emails • Contractor handbooks • Electronic platforms Engagement • One-on-one meetings • Workshops • Community meetings
2. Designed to Measure Performance • If it matters , measure it • Use both lagging and leading metrics • Examples of relevant performance data – Contractor work hours – Quarterly and annual incident rates – Post job evaluation feedback – Audit and Inspection action items – Status of certificates of insurance
2. Designed to Measure Performance (continued) A. Visibility • Match KPIs with specific contracting company entities Knox Group Inc. Knox Construction Knox Supplies Knox Engineering B. Timeliness Knox Construction • Obsession for data driven decisions U.S. • Electronic vs. paper Knox Construction Canada
3. Incorporate a Risk-Ranking Process • Contractors come in various sizes, capabilities, risk profiles • Classify risks according to pre-set criteria and matrix – Potential adverse consequences – Frequency, duration and / or scope of work – High, Medium, Low • Re-evaluate / adjust contractor risk periodically
3. Contractor Risk Matrix - Example
4. Utilize a Three-Step Due-Diligence Process
5. Maintain a Qualified Contractor List • Proactive, structured process for finding, qualifying, onboarding, monitoring, and terminating contractors • Enhances procurement integrity • Builds stronger and lasting partnerships with contractors
6. Establish Consequences and an Exit Strategy • Establish, communicate and enforce consequences for non-compliant contractors • Develop contracts and agreements carefully • Eliminate time / effort required to manage bottom performers • Fewer, better service providers
7. Address Subcontractor Management • Contractors with logos you don’t recognize on your jobsite? • Subcontractors have a higher likelihood of incidents • Best practice approaches: 1. Subs qualified / monitored to same level of standards as general contractor 2. General contractor required to demonstrate the same level of rigor for qualifying subs
8. Follow Standardized and Transparent Guidelines • Consistency and transparency is a common challenge • Utilize a single, well organized database • Improves procurement transparency • Minimize duplication and inefficiencies
9. Integrated with Internal Business Processes • Contractor management as an integral part of the complete business processes • Goal: to drive end-to-end risk management • Examples of contractor Key Performance Indicator (KPI) integration: – Purchase orders issued only to qualified contractors – Site entry ID badges tied to contractor approval status
10. Leverage Technology • Without technology / automation, contractor management can become laborious, inefficient and disorganized • 59% of best-in-class organisations use technology to enhance HSE performance (2) • Use of Internet and specialized management tools – Collect and share information in a secure and efficient environment – Reduce duplication and administrative cost (2) http://www.aberdeen.com/Aberdeen-Library/6991/RA-envinronment-health-safety.aspx
Resource: White Paper on Best-in-Class Contractor Management Request Whitepaper at : http://www.isnetworld.com/ContractorManagement
ISNetworld Process – Collect. Verify. Connect. 1. Self-Reported Information 2. Verified Information 3. Configurable Hiring Client Grading ISN Review & Verification Services (RAVS) • Written Programs Status: A • Injury & Illness Records • EMR • Citation/Prosecution Search • Training Status: B • Insurance = + • Workers’ Comp Clearance & Rates vvvvv va Hiring Client Joe’s • Post Job Evaluation WELDING Status: B • Field Feedback • Working Relationship • Competency Assessments Levels of Information • Contracts/Agreements Status: A • Company 3 rd Party (Data Providers) • Project • On-Site Inspections • Individual • D&A & Background Checks • Operator Qualifications (OQ) Status: A-Prequalified • Training
ISN in Numbers 75+ Countries with ISN Customers Phase 2 Phase 3 450+ Employees 950+ Years of HSE and Insurance/Risk Management Experience ISN Offices Dallas • Calgary • Sydney • London • Los Angeles • New York • Toronto
Contractor/Supplier Benefits
The Results ISN US Contractors vs. BLS 2013 Nonfatal TRIR Rate Comparison All Industries, Most Frequent NAICS Code in ISN North American Industry Classification System (NAICS) Name and Number of Contractors/Suppliers *Bureau of Labor Statistics for 2013: http://www.bls.gov/iif/oshwc/osh/os/ostb3958.pdf
2013 Peer Benchmarking Report – Hiring Clients Phase 3 The 2013 Benchmarking Report was created by ISNetworld to compare Pipeline Hiring Clients to their peer companies in the Midstream Oil & Gas (Pipeline) industry.
ISN Benchmarking Report – Contractors Contractor Performance Benchmarking
Operator Qualifications (OQ)
Operator Qualifications Process in ISNetworld 1. Hiring Client Determines 2. Contractor Inputs OQ 3. Hiring Client Monitors OQ Covered Task List Data Provider IDs Compliance Hiring Client: Determines Contractor: Inputs employee data Reporting Capabilities acceptable qualifications and into ISNetworld data providers Data Provider: Sends employee Continuous Employee qualifications to ISNetworld via Task: Pipeline Repairs Evaluation automatic data feed Hot Tapping Qualification Methods Notifications Welding Client Specific Installation 3 rd Party Data Providers Replacement
OQ Covered Task List Task List Management • Task Number • Task Name • Qualification Methods • Expiration Periods
Current OQ Data Providers Hiring Clients can use current OQ data providers listed below or sponsor new data provider relationships. Click here to view the current list of ISNetworld Data Providers
Employee Quick Check
Viewing an OQ Report Ability to Print and Email any Generated OQ Report Expiration set by the Client Designates type of qualification
Browsing OQ Reports Runs new/live report Allows Client to run deficiency report based on tasks needed View latest generated View all-time list of OQ OQ report reports generated
Mobile Site • Works on all mobile devices with internet access • iPhone, Android, Blackberry, Windows Phone • Mobile site does not require download or reinstallation Phase 1 Phase 2 • Ability to quickly view/search for information on contractors, check ISN Messages, etc. • ISN Mobile Tools: • Browse OQ Reports • Bulletin Board • Dashboard • Evaluation Reports • Messages • Contractor Search • QuickCheck
Quick Facts
Statistics – February 2015 78 Number of Active Task Lists in ISNetworld 2,472 Number of Contractor Companies Who Have Current OQ Reports 172,085 Number of Current Qualifications 361,814 Number of Current OQ Reports Submitted 950,000,000+ Number of Qualifications housed in ISN
2015 Pipeline Safety Operator Training ISN April 15, 2015
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